In countries where absolute poverty exists, low incomes can trigger a cycle that leaves incomes low. What stages make up this cycle?
- Alow incomes → low consumption → low prices → low output → low incomes
- Blow incomes → low government spending → high taxation → low employment → low incomes
- Clow incomes → low investment → high profits → low dividends → low incomes
- Dlow incomes → low saving → low investment → low productivity → low incomes